UiPath vs. AppLovin: Which AI-Driven Tech Stock is Purchase-Worthy?
UiPath (PATH) and AppLovin Corporation (APP) stand out as AI-focused players in tech, each tackling different sectors. UiPath leads in robotic process automation (RPA), using AI to streamline enterprise workflows. AppLovin operates in mobile ad tech, optimizing app monetization and user acquisition through AI.
With AI becoming central to business software, investors face a key question: which stock offers a better opportunity? Let’s break down their fundamentals, growth drivers, and valuations.
The Case for UiPath
UiPath holds a strong position in the growing RPA market, which is expected to see significant expansion. Its end-to-end automation platform taps into the rising demand for AI-powered enterprise solutions.
Strategic partnerships with Microsoft, Amazon, and Salesforce are a major advantage. These alliances enhance UiPath’s reach and credibility by integrating its platform with Microsoft Azure, AWS, and Salesforce Cloud ecosystems.
UiPath shows high customer retention, with net retention rates between 110% and 115%, signaling strong expansion within existing accounts. In Q1 fiscal 2026, revenue rose 6% year-over-year to $357 million, while annual recurring revenue grew 12% to $1.69 billion. This steady growth reflects the strength of its subscription model and loyal customer base.
With a global presence and solid enterprise partnerships, UiPath is well-positioned to maintain leadership in RPA and intelligent automation.
The Case for AppLovin
AppLovin leads mobile advertising with its AI engine Axon 2, launched in Q2 2023. Axon 2 has significantly boosted ad performance, quadrupling advertising spend on its platform. This growth pushed AppLovin to an estimated $10 billion annual ad spend run rate from gaming clients, placing it among the top global ad tech firms.
Axon 2 played a crucial role in recovering from the disruptions caused by changes in mobile user acquisition strategies, especially after the Identifier for Advertisers update. While Western mobile gaming slowed in 2022, Axon 2 helped reignite momentum. In-app purchases are growing modestly, but the MAX publisher base is expanding faster, highlighting Axon 2’s strategic value.
Zacks Estimates: PATH vs. APP
- UiPath’s 2025 sales and EPS growth estimates are 8.5% and 5.7%, respectively, with EPS projections stable over the past 60 days.
- AppLovin’s 2025 sales and EPS growth estimates are 16.3% and 85.4%, respectively. However, EPS revisions have balanced out, keeping estimates flat recently.
Valuation Comparison
UiPath trades at a forward sales multiple of 4.09X, below its 12-month median of 4.44X. In contrast, AppLovin’s multiple is 19.88X, slightly above its median of 18.7X.
Which Stock Makes More Sense?
UiPath emerges as the better AI-driven investment choice. While AppLovin impresses with Axon 2 and ad spend growth, UiPath’s leadership in the expanding RPA market, strong ties with Microsoft, Amazon, and Salesforce, and high customer retention provide more stability.
Its subscription-based model offers recurring revenue streams and a more attractive valuation. UiPath’s enterprise focus and partnerships give it an edge in scaling AI solutions with real business impact. For those seeking sustainable AI exposure in tech, UiPath is a smarter buy.
UiPath currently holds a Zacks Rank #1 (Strong Buy), whereas AppLovin sits at Zacks Rank #3 (Hold).
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